Acct ch. 1 100% SOLUTION

The term "relevant range" as used in cost accounting means the range over which A. relevant costs are incurred. B. costs may fluctuate. C. cost relationships are valid. D. production may vary. - ANSWER C When cost relationships are linear, total variable prime costs will vary in proportion to changes in A. total overhead cost. B. production volume. C. total material cost. D. direct labor hours. - ANSWER B An example of a fixed cost is A. cost of electricity. B. straight-line depreciation. C. total indirect material cost. D. total hourly wages. - ANSWER B A cost that remains constant in total but varies on a per-unit basis with changes in activity is called a(n) A. expired cost. B. mixed cost. C. variable cost. D. fixed cost. - ANSWER D